INFLUENCE OF STRATEGIC AGILITY ON FINANCIAL SUSTAINABILITY OF NGOS IN THE ADVOCACY SECTOR IN KENYA

Aidah W. Alice, Dr. Esther Waiganjo, Dr. Agnes Njeru

Abstract


This study aimed to examine the influence of strategic agility on the financial sustainability of NGOs in the advocacy sector in Kenya. The study utilised a mixed-methods research approach and adopted a cross-sectional survey design. The study’s target population was 11,176 NGOs in the advocacy sector in Kenya, using a sample size of 384 NGOs, based on the Taro Yamane formula. 305 responses were received and analysed. Research instruments included questionnaires and checklists used to triangulate responses from questionnaires. Qualitative data was analyzed and presented in narrative statements, while inferential statistics were analyzed using the Pearson correlation coefficient and multiple regression analysis to test hypotheses. The correlation index between strategic agility and financial sustainability was positive and significant, r (304) =.362; p≤.05. This inferred that as the level of strategic agility increases, the financial sustainability also increases. The T value for strategic agility was also significant; T (304) = t=57.735; β=  0.213.; P≤.05. This implied that for each unit increase in strategic agility, the financial sustainability of the NGOs could increase by 0.213 units. This inferred the rejection of the null hypothesis and the conclusion made that H1 (There is a significant influence of strategic agility on the financial sustainability of NGOs in the advocacy sector in Kenya). The researcher recommends the institutionalisation of strategic agility by NGO management and a policy action by the regulatory authorities to provide necessary training and training for the NGOs so as to incubate their skills for effective strategic agility.

 

Keywords: Strategic Agility, Financial Sustainability


Full Text:

PDF

References


Amini, M. & Rahmani, A. (2023). How Strategic Agility Affects the Competitive Capabilities of Private Banks. International Journal of Basic and Applied Sciences 10(1): 8397-8406., Available at SSRN: https://ssrn.com/abstract=4408544

Arokodare, M. A. & Asikhia, O. U. (2020). Strategic Agility: Achieving Superior Organisational Performance through Strategic Foresight. Global Journal of Management and Business Research, 20(A3), 7–16.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management. https://doi.org/10.1177/014920639101700108

Blanco-Portela, N., R-Pertierra, L., Benayas, J. & Lozano, R. (2018). Sustainability Leaders’ Perceptions on the Drivers for and the Barriers to the Integration of Sustainability in Latin American Higher Education Institutions. Sustainability, 10(8), 2954; https://doi.org/10.3390/su10082954

Boyes-Watson, T., & Bortcosh. S. (2022). Breaking the starvation cycle? How international funders can stop trapping their grantees in the starvation cycle and start building their resilience. Humentum, available at: https://reliefweb.int/training/3898850/planning NGO-financial-sustainability

Cleveland University, 2024. https://onlinelearning.csuohio.edu/blog/finding-your-voice advocacy-social-work-and-policy-issues Creswell, J. W. & Creswell, J. D. (2017). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Sage publications.

Cronbach, L. J. (1951). Coefficient Alpha and the Internal Structure of Tests. Psychometrika, 16(3), 297-334.

Denning, S. (2017). The New Frontier for Agile: Strategic Management, Strategy and Leadership, 45(2), 12-18

Eisenhardt, K. M. & Martin, J. A. (2000). Dynamic Capabilities: What are They? Strategic Management Journal, 21(10‐11), 1105-1121.

El-Khalil, R. & Mezher, M. A. (2020). The Mediating Impact of Sustainability on the Relationship between Agility and Operational Performance, Science Direct, Operations Research Perspectives, 7, 100171.

Goel, V. (2021); How to Drive Operational Agility for Your Organisation, Customer Think

Hair, J., Black, W., Babin, B. & Anderson, R. (2010). Multivariate Data Analysis. London: Maxwell Macmillan.

Huang, S., van der Veen, R., & Song, Z. (2018). The impact of coping strategies on occupational stress and turnover intentions among hotel employees. Journal of Hospitality Marketing & Management, 27(8), 926-945.

I Choose Life – Africa (ICL – A) (2017). https:/Ichooselife/global/programs services/leadership-governance/institutional-transformation/

Kenya National Council of NGOs (2018). Report: Summary of Challenges and Opportunities facing NGOs and the NGO Sector. Retrieved from: http://www.penkenya.org/UserSiteFiles/public/challenges%20and%20opportunities%20faci ng%20NGOS.pdf

Kulzy, W. W., & Fricker, R. D. (2015). The Survey Process: With an Emphasis on Survey Data Analysis. Phalanx, 48(2), 32–37.

Kwon, S. J., Ryu, D. & Park, E. (2018). The Influence of Entrepreneur’s Strategic Agility and Dynamic Capability on the Opportunity Pursuit Process of New Ventures: Evidence from South Korea. Academy of Strategic Management Journal, 17(1), 1-17

Kyläheiko, K., Sandström, J. & Virkkunen, V. (2002). Dynamic Capability View in Terms of Real Options. International Journal of Production Economics, 80(1), 65-83

Marhraoui, M.A. & Manouar, A.E. (2017). Towards a New Framework Linking Knowledge Management Systems and Organisational Agility: An Empirical Study. International Journal of Computer Science & Information Technology, 9(1): 21-36

Mertens, D. M. (2017). Mixed Methods Design in Evaluation (Vol. 1). SAGE publications.

Mohamed, A. & Makori, D. (2022). Strategic Financial Practices and Funding Sustainability of Non-Governmental Organisations in Kenya: A Case of Islamic Relief Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 4(2), 1 10. https://doi.org/10.35942/ijcfa.v4i2.248

Ngo, V. M. & Vu, H. M. (2020). Customer Agility and Firm Performance in the Tourism Industry. Tourism International Interdisciplinary Journal, 68, 68–82. doi: 10.37741/t.68.1.6

NGOs Coordination Board (2021). Annual NGO Sector Report for Financial year 2021/22. Kenya

Renz, D. O., and associates, (2010). The Jossey-Bass Handbook of Nonprofit Leadership and Management, San Francisco, Calif.: Jossey-Bass.

Roberts, N. & Grover, V. (2012). Leveraging Information Technology Infrastructure to Facilitate a Firm's Customer Agility and Competitive Activity: An Empirical Investigation. Journal of Management Information Systems, 28, 231–270. doi: 10.2753/MIS0742-1222280409

Sun, J., Sarfraz, M., Turi, J. A. & Ivascu, L. (2022). Organisational Agility and Sustainable Manufacturing Practices in the Context of Emerging Economy: A Mediated Moderation Model. Processes, 10(12), 2567. MDPI AG. Retrieved from http://dx.doi.org/10.3390/pr10122567

Teece, D. & Pisano, G. P. (1994). The Dynamic Capabilities of Firms: An Introduction. Industrial and Corporate Change 3 (3), 537-556.

Teece, D. J. (2019). A Capability Theory of the Firm: an Economics and (Strategic) Management Perspective. New Zealand Economic Papers, 53(1), 1-43.

Teece, D., Pisano, G. & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic

Velayutham, S., Aldridge, J. & Afari, E. (2013). Influence of Psychosocial Classroom Environment on students’ Motivation and Self-Regulation in Science Learning: A Structural Equation Modeling Approach, Research in Science Education, 43(3), 507 527.

Wangasa, C. N. (2018). Effect of Strategic Agility on the Performance of Commercial Banks in Kenya. Unpublished MBA Thesis, University of Nairobi

Whittington, R., Regnér, P., Angwin, D., Johnson, G. & Scholes, K., (2020). Exploring Strategy: Text and Cases (12th Ed.). Pearson, United Kingdom

Yamane, T. (1967). Statistics: An Introductory Analysis. (2nd Edition), Harper and Row, New York.

Yong, A.G. and Pearce, S. (2013) A Beginner’s Guide to Factor Analysis: Focusing on Exploratory Factor Analysis. Tutorials in Quantitative Methods for Psychology, 9, 79 94.

Zhou, S., Qiao, Z., Du, Q., Wang, G. A., Fan, W. & Yan, X. (2018). Measuring Customer Agility from Online Reviews using Big Data Text Analytics. Journal of Management Information Systems, 35, 510–539. doi: 10.1080/07421222.2018.1451956


Refbacks

  • There are currently no refbacks.